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4. Suppose that you have the following bonds: A: 1-year zero coupon bond has a YTM of 2% B: 2-year zero coupon bond has a

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4. Suppose that you have the following bonds: A: 1-year zero coupon bond has a YTM of 2% B: 2-year zero coupon bond has a YTM of 396 C: 3-year zero coupon bond has a YTM of 4% . . a. b. c. If each of these bonds has a face value of $100, what are the prices of each of these bonds? What do bonds B and C imply about the interest rate in the third year? If the law of one price holds, what is the fair value of a 3-year coupon bond with a face value of $100

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